Potential end of single premium PPI welcomed

This article was correct at the time of publication. It is now over 6 months
old so the content may be out of date.

Calls for an end to single premium payment protection insurance (PPI) have been welcomed by insurance brokers.

Yesterday the Financial Services Authority (FSA) wrote to firms to ask them to stop providing the policies alongside unsecured loans immediately, rather than wait for a Competition Commission ban to come into effect next year.

And the British Insurance Brokers' Association (Biba) has backed the request, describing the products as "bad value in many cases".

With the policies adding the cost of cover on to the unsecured loan itself, consumers were found to be unknowingly paying interest on the insurance in some instances.

Biba chief executive Eric Galbraith remarked: "We fully support and welcome the FSA's move to withdraw the sale of single premium (PPI) with unsecured loans," adding: "This news is excellent for the customer."

Consumer campaign group Which? also praised the move, adding that lenders continuing to provide the product beyond the May 29th deadline suggested by the FSA should be named and shamed.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…